The Illinois Secretary of State’s office is taking exception to an Aug. 1 statement from Carvana that a judge’s decision to grant the company’s request for a temporary restraining order allows the vehicle seller to again do business in Illinois “without any restriction.”
The July 29 order from Judge Bonnie M. Wheaton, which followed a July 18 suspension of Carvana’s license, states that the Secretary of State is enjoined from suspending or revoking Carvana’s Dealer Certificates of Authority and dealer plates through Aug. 31.
The license was suspended in Illinois for misuse of issuing out-of-state temporary registration permits and for failing to transfer titles, according to a spokesperson from the Secretary of State’s office.
The July 18 suspension was the second for Carvana. The first suspension was instituted May 10 and was stayed as of May 26, allowing business to be conducted in Illinois under strict guidelines. During the reinstated July 18 suspension order, Carvana was not allowed to sell any vehicles in Illinois, said Henry Haupt, press secretary for the Secretary of State.
Wheaton’s ruling prompted Carvana to issue a statement that the company can operate as usual in Illinois “without any restriction.” However, the Secretary of State’s Office said that is not accurate and that Carvana is allowed to conduct business in Illinois “under strict guidelines,” very much as was the case during the reinstated July 18 suspension order.
“During the reinstituted stay, Carvana is allowed to sell vehicles to Illinoisans, but Carvana cannot issue temporary registration permits or license plates during this stay order,” a spokesperson from the Secretary of State’s Office said. “Carvana must register titles through Illinois remitters, which are third party entities licensed in Illinois to process title transactions. This will ensure titles are processed in a timely manner.”
Questioned about the comment from the Secretary of State’s Office that it cannot sell vehicles without restriction, a Carvana spokesperson said only that its original statement about there being no restriction means that Carvana is not restricted from selling cars to Illinois customers.
In Oak Brook, Carvana opened its only Illinois location in April 2019. It is located at 720 Enterprise Drive, where it’s known for its glass tower “vending machine’ in which used vehicles for sale are displayed.
Chuck Fieldman is a freelance reporter for Pioneer Press.